Payback: Nelson gives cash to DSCC

Democrats who were angry that they gave Sen. Ben Nelson money only to have him announce his retirement are getting some of that money back.

Nelson (D-Neb.) has returned $500,000 that the Democratic Senatorial Campaign Committee spent in a controversial effort to bolster his reelection efforts last year, and he may turn over more money in coming months.

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The DSCC put $1.5 million plus into the race last year via the state party, which ran pro-Nelson TV and radio ads, starring the senator himself. While billed simply as a way for Nelson to talk about his legislative record, Nebraska Republicans vehemently objected to the effort, claiming they were thinly veiled campaign ads and violated campaign coordination rules. The Nebraska GOP filed complaints with the Federal Election Commission and the Senate Ethics Committee over the Nelson ad blitz.

But now, with Nelson retiring and former Sen. Bob Kerrey jumping into the race to replace him, Nelson has sent that money back to the DSCC, funds that that can be used in Nebraska or other Senate races.

“I’ve already transferred $500,000 to the DSCC. We’re making other refunds, and we’ll see what we have left,” Nelson told POLITICO.

Nelson had nearly $2.9 million in his campaign account as of Dec. 31, FEC records show. Roughly $815,000 will be returned to donors who had given to Nelson for the general election, as required under federal law. Minus the $500,000 he’s already transferred to the DSCC and administrative costs for unwinding his campaign committee, that still leaves Nelson with well more than $1 million that can be sent to the DSCC or used for other campaigns. Lawmakers can give unlimited sums from their campaigns to the national party committee.

“It may be more, we’ll see what we have. … It’s just to make sure that we recognize that they advanced money, and we’re returning it as best we can,” Nelson added.

Nebraska Republicans, however, countered that the $500,000 transfer from Nelson to the DSCC supported their original claim that last fall’s ads were really campaign-related ads to bolster Nelson’s standing at a time when several potential challengers were battling for the right to take him on.

In addition, they tried to tie the money to Kerrey, who is going up with an initial TV ad buy in Nebraska this week.

Kerrey has come under fire from Republicans in Nebraska and Washington, for his comment that Senate Majority Leader Harry Reid (D-Nev.) had made “important” promises to him if he got into the Senate race, possibly relating to his seniority and committee assignments if he wins. Reid denied making any deal with the former two-term senator, saying during a Sunday interview on CNN that Kerrey “was promised nothing” before deciding to run.

“Is this part of the secret deal Bob Kerrey admitted making to get him to enter the Senate race — a deal that Sen. Harry Reid now denies? What else was part of the deal, and what role did Sen. Ben Nelson play in all of this?” asked Mark Fahleson, chairman of the Nebraska Republican Party.